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A customer would like to obtain a 3-month option to purchase additional units of a product for $77 each. This product currently sells for $76
A customer would like to obtain a 3-month option to purchase additional units of a product for $77 each. This product currently sells for $76 each. Assume u equals 1.1502 and d=.8694. Approximately what price per unit should the customer charge for this option if the annual risk-free rate is 2.8%.
A. 4.79
b 5.98
c 6.17
d 6.02
e 5.07
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